KS Energy

KS Energy: Group’s 80%-owned subsidiary KS Drilling Pte Ltd entered into an agreement for the supply and construction of a jack-up drilling rig for a total consideration of US$165.5m (~S$208.2m). The jack-up drilling rig is capable of drilling in up to 300 feet water depth. The delivery of the Rig is expected to be in 1Q14, with the transaction funded by a combination of internal resources and borrowings. Based on Bloomberg estimates (only 2 houses cover counter), the 12-month consensus TP for KS Energy is at $0.50.